Amazon's Logistics Expansion Blurs Line Between Small and Big Business
Amazon's Logistics Expansion Blurs Line Between Small and Big Business

When consumers buy from small businesses on platforms like Etsy or Shopify, they may feel they are supporting independent makers rather than corporate giants. However, a growing number of these orders are fulfilled by Amazon's logistics network, often without the buyer's knowledge. Amazon's Multi-Channel Fulfillment program, which ships orders for outside merchants, now serves over 200,000 U.S. sellers and grew by roughly 70% in 2024 alone.

On May 4, 2026, Amazon launched Amazon Supply Chain Services, opening its warehouses, trucks, and delivery network to all businesses, from small brands to large corporations like Procter & Gamble and American Eagle. The service handles fulfillment for sellers on Shopify, Etsy, eBay, and TikTok Shop, with packaging left unmarked by design. This means a purchase from a small business may still involve Amazon's infrastructure.

Consumer behavior researchers highlight a growing dilemma: shoppers who intentionally avoid Amazon may inadvertently support it through fulfillment fees. Amazon collects roughly $15 per three-pound package shipped in two days, plus monthly storage fees, and gains visibility into competitors' sales data. CEO Andy Jassy described Supply Chain Services as a “major growth opportunity,” akin to Amazon Web Services.

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Small businesses often choose Amazon's network for speed and efficiency. A founder shipping from a garage can only deliver in three to five days, while Amazon guarantees two-day delivery, which has become a standard expectation after 15 years of Prime. This forces small brands to balance ethical consumerism with practical logistics.

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